Public Act 098-0633
 
SB3287 EnrolledLRB098 16953 JLS 52031 b

    AN ACT concerning employment.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Workers' Compensation Act is amended by
changing Section 5 as follows:
 
    (820 ILCS 305/5)  (from Ch. 48, par. 138.5)
    (Text of Section WITHOUT the changes made by P.A. 89-7,
which has been held unconstitutional)
    Sec. 5. (a) No common law or statutory right to recover
damages from the employer, his insurer, his broker, any service
organization that is wholly owned retained by the employer, his
insurer or his broker and that provides to provide safety
service, advice or recommendations for the employer or the
agents or employees of any of them for injury or death
sustained by any employee while engaged in the line of his duty
as such employee, other than the compensation herein provided,
is available to any employee who is covered by the provisions
of this Act, to any one wholly or partially dependent upon him,
the legal representatives of his estate, or any one otherwise
entitled to recover damages for such injury.
    However, in any action now pending or hereafter begun to
enforce a common law or statutory right to recover damages for
negligently causing the injury or death of any employee it is
not necessary to allege in the complaint that either the
employee or the employer or both were not governed by the
provisions of this Act or of any similar Act in force in this
or any other State.
    Any illegally employed minor or his legal representatives
shall, except as hereinafter provided, have the right within 6
months after the time of injury or death, or within 6 months
after the appointment of a legal representative, whichever
shall be later, to file with the Commission a rejection of his
right to the benefits under this Act, in which case such
illegally employed minor or his legal representatives shall
have the right to pursue his or their common law or statutory
remedies to recover damages for such injury or death.
    No payment of compensation under this Act shall be made to
an illegally employed minor, or his legal representatives,
unless such payment and the waiver of his right to reject the
benefits of this Act has first been approved by the Commission
or any member thereof, and if such payment and the waiver of
his right of rejection has been so approved such payment is a
bar to a subsequent rejection of the provisions of this Act.
    (b) Where the injury or death for which compensation is
payable under this Act was caused under circumstances creating
a legal liability for damages on the part of some person other
than his employer to pay damages, then legal proceedings may be
taken against such other person to recover damages
notwithstanding such employer's payment of or liability to pay
compensation under this Act. In such case, however, if the
action against such other person is brought by the injured
employee or his personal representative and judgment is
obtained and paid, or settlement is made with such other
person, either with or without suit, then from the amount
received by such employee or personal representative there
shall be paid to the employer the amount of compensation paid
or to be paid by him to such employee or personal
representative including amounts paid or to be paid pursuant to
paragraph (a) of Section 8 of this Act.
    Out of any reimbursement received by the employer pursuant
to this Section the employer shall pay his pro rata share of
all costs and reasonably necessary expenses in connection with
such third-party claim, action or suit and where the services
of an attorney at law of the employee or dependents have
resulted in or substantially contributed to the procurement by
suit, settlement or otherwise of the proceeds out of which the
employer is reimbursed, then, in the absence of other
agreement, the employer shall pay such attorney 25% of the
gross amount of such reimbursement.
    If the injured employee or his personal representative
agrees to receive compensation from the employer or accept from
the employer any payment on account of such compensation, or to
institute proceedings to recover the same, the employer may
have or claim a lien upon any award, judgment or fund out of
which such employee might be compensated from such third party.
    In such actions brought by the employee or his personal
representative, he shall forthwith notify his employer by
personal service or registered mail, of such fact and of the
name of the court in which the suit is brought, filing proof
thereof in the action. The employer may, at any time thereafter
join in the action upon his motion so that all orders of court
after hearing and judgment shall be made for his protection. No
release or settlement of claim for damages by reason of such
injury or death, and no satisfaction of judgment in such
proceedings shall be valid without the written consent of both
employer and employee or his personal representative, except in
the case of the employers, such consent is not required where
the employer has been fully indemnified or protected by Court
order.
    In the event the employee or his personal representative
fails to institute a proceeding against such third person at
any time prior to 3 months before such action would be barred,
the employer may in his own name or in the name of the
employee, or his personal representative, commence a
proceeding against such other person for the recovery of
damages on account of such injury or death to the employee, and
out of any amount recovered the employer shall pay over to the
injured employee or his personal representatives all sums
collected from such other person by judgment or otherwise in
excess of the amount of such compensation paid or to be paid
under this Act, including amounts paid or to be paid pursuant
to paragraph (a) of Section 8 of this Act, and costs,
attorney's fees and reasonable expenses as may be incurred by
such employer in making such collection or in enforcing such
liability.
(Source: P.A. 79-79.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.